CSX, Maryland move forward on Baltimore intermodal site

Plans for Baltimore’s intermodal facility took another step forward Thursday as the state’s transportation agency approved entering into a lease with CSX Transportation Inc. for property along proposed site.

The Maryland Transportation Authority signed off on starting negotiations for an airspace lease with CSX for property part of the 70-acre site that straddles Mount Clare and Morrell Park in Southwest Baltimore. An airspace lease would give the Jacksonville, Fla.-based rail giant the right to build on state-owned land under the elevated portions of Interstate 95, said David K. Greene, director of the division of strategic development for the MdTA.

The lease will allow for the creation of the CSX intermodal site without selling the land to the company, Greene said. The city and CSX (NYSE: CSX) also own portions of the 70-acre site.

“We cannot sell that property because of Federal Highway Administration regulations,” Greene said. “But we can lease those properties.”

Terms of the lease have not yet been negotiated. The Federal Highway Administration and the state Transportation Authority will both have to approve the terms of the lease, Greene said.

Officials with CSX could not be immediately reached for comment.

Intermodal facilities handle transferring container cargo brought into the port from trucks to rail cars. The new facility will allow containers to be double stacked on trains leaving the city. The city’s current intermodal site at Seagirt Marine Terminal does not allow for double-stacked containers due to the height restrictions of the Howard Street tunnel.

The intermodal facility is expected to help the Port of Baltimore handle increased cargo traffic after the expansion of the Panama Canal. Those ships are scheduled to arrive in Baltimore by May 2015.

CSX is scheduled to complete tests for the proposed intermodal site by June, Greene said. The company has said it expects construction for the $90 million to $95 million site to begin this fall. The state will pay for $30 million of the project, while CSX will contribute $60 to $65 million.

The Maryland Transportation Authority hopes to complete its lease with CSX before the start of construction, Greene said. If it does not, the state could grant the company “right of access” permits to start construction without a lease, he said.